Investing In Nickel Is The Way Forward

The future is bright for electric vehicles. As we have often said on this website, the electric vehicles are the way forward, because they’re better for the environment and deal with sustainable solutions. But in this article, we will look at something completely different. It still focuses on the electric vehicles, but this time we will have a look at the components of the EV. One in particular: the EV battery. We at Bicle.com had a look at the rise of EV batteries and the higher demand for nickel.

The battery

An EV gets its power from the battery and there are different sort of batteries. There are batteries consisting of cobalt, lithium, copper and graphite - but batteries also consist of nickel. There are few nickel-based batteries going around: Nickel-cadmium, Nickel-metal-hydride, Nickel-iron, Nickel-zinc and Nickel-hydrogen. Now, this isn’t so spectacular in itself, but for investors, this might seem very interesting because it creates a certain opportunity.

Nickel-market

So what exactly is this so-called opportunity? The reason why nickel might be interesting for investors is because of the price per tonne. Investingnews.com says the following about the price of Nickel: “ Nickel was soaring high at $20,000 per tonne in 2014, but took a hit and bottomed out under $8,000 in 2016. Since then, many nickel investors have hoped a comeback would be in the works — some believe that nickel’s place in EVs will be the ticket.

Because of the high demand for EV’s, the demand for nickel has grown as well. Right now the price of nickel is about $12,136 per tonne. Which means that is has grown since 2016, but it’s still under the $20,000 of 2014. The high demand for the EVs is growing and that will mean that the price of nickel will grow accordingly if you look at the market principles. The main reason for the growth is that batteries containing nickel are cheaper to produce and that’s why the demand has gone up.

Opportunity

If investors are looking for an opportunity to invest in a fast-growing market, this might be their shot. As the EVs are growing and are likely to grow even more in the future, there is money to be earned in this market. It’s likely that the price of Nickel will grow because of the high demand and for the investors who go in now, this might be their golden egg and they could profit on the back of the rise of the EVs in the world.

Investing can be a tricky business, but the rise of EVs and their batteries is real. The usage of Nickel in those batteries leads to this forecast and this could prove to be a worthy investment for companies.

Do you feel like it’s wise to invest in nickel, now that electric vehicles are a thing of the present and future? We at Bicle would love to hear your thoughts! Comment down below.